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What are the different types of trusts?

Trusts transfer assets to heirs and beneficiaries while minimizing or eliminating estate taxes. There are trusts used solely by married couples, trusts that benefit certain types of people (and pets), and trusts that benefit charities and nonprofit organizations. Common types of trusts fall into four categories.

What are the different types of trust accounts?

Trust accounts are managed by a trustee on behalf of a third party. Parents often open trust accounts for minor children. An account in trust can include cash, stocks, bonds, and other types of assets. Totten or Payable on Death (POD) trust accounts allow beneficiaries to claim the account's assets upon the death of the account holder.

What is an example of an account in trust?

One example of an account in trust is a Uniform Gifts to Minors Act (UGMA) account. This type of account in trust created allows minors to legally own the assets held in these accounts. However, they can't have access to the account's principal and income until they reach legal age.

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